Overview

• Bitcoin pulled back from record highs above $125,000 to trade in the $118,000–$121,000 band, with stocks sliding and gold holding near its recent break above $4,000.
• Derivatives markets saw heavy liquidations running into the hundreds of millions of dollars, and data show clustered shorts above roughly $121,600 that could fuel a short squeeze on a rebound.
• U.S. spot Bitcoin ETFs have taken in more than $5 billion so far in October, and BlackRock’s IBIT sits near $98.6 billion in assets as it approaches the $100 billion milestone.
• On‑chain metrics point to elevated long‑term holder distribution of roughly 295,000 BTC over 30 days, while analysts flag $120,000 as near‑term support and about $112,200 as a key short‑term holder cost basis.
• Macro pressures include a rebounding U.S. dollar, an ongoing government shutdown and fresh tariff rhetoric, with traders watching upcoming data and policy dates that could add volatility.